Q. Inequality in the ownership pattern of resources is one of the major causes of poverty. Discuss in the context of ‘paradox of poverty’.

Model Answer:

The “paradox of poverty” refers to the persistence of severe destitution amidst abundant natural and economic wealth. It is primarily driven by skewed resource ownership, reflecting systemic distribution failures.

1. Inequality in Resource Ownership Driving Poverty

1. Concentration of Capital: The top 1% holds over 40% of India’s wealth, severely limiting capital access for the marginalized (Oxfam Inequality Report).
2. Skewed Land Distribution: Historical landlessness among marginalized castes prevents asset-backed credit access and economic mobility (SECC Data).
3. Digital and Technological Divide: Unequal ownership of digital infrastructure excludes the rural poor from modern economic opportunities.
4. Human Capital Deficit: Increasing privatization of quality healthcare and education drains low-income household savings, perpetuating intergenerational poverty.

2. Contextualizing the ‘Paradox of Poverty’

1. The ‘Resource Curse’: Regions with abundant natural wealth often suffer extractive economic models, leaving local populations impoverished (e.g., high Multidimensional Poverty in mineral-rich Jharkhand and Odisha).
2. The Agrarian Paradox: Despite achieving record foodgrain production and exporting surpluses, primary producers like small and marginal farmers face chronic indebtedness.
3. Urban Spatial Inequality: Megacities drive massive macroeconomic GDP growth yet simultaneously harbor vast, deprived slums lacking basic civic amenities (e.g., Dharavi in Mumbai).
4. Jobless Growth Pattern: High corporate profitability and capital-intensive growth fail to generate adequate employment, impoverishing the broader demographic dividend.

Resolving this paradox requires shifting from mere GDP growth to systemic asset redistribution, thereby fulfilling the Constitutional mandate of equitable resource ownership (Article 39(b) and (c)).